...1996, Danone, a multinational foreign company entered into a joint-venture contract with a local Chinese beverage company named Wahaha in order to better access to Chinese market. The form of the joint venture was a great success at the beginning stage, with both parties gained substantial benefits from the relationship. However, in 2001, conflict arise when Wahaha Group created a series of Non-joint venture companies that sold the same product as the joint venture and use the Wahaha trademark. Since then, a long time dispute continued around the ownership of the “Wahaha” trademark, the rationality of the existence of non-joint ventures and the non-compete issue. Several lawsuits were carried but all ended in Wahaha’s favor. Eventually, Danone relinquish the claims and secede from the joint venture by selling its 51 percent share to the business’s Chinese partners. Main body With a global standing and desire for international expansion, Danone entered the Chinese market in the late 1980s. Compared with many developed countries where markets almost reach saturation, China has a promising market with cheap labor which provide a good opportunity for Danone to further develop. At early stage, Danone entered China through forming a joint venture with the local enterprise Wahaha. There are three main reasons for why Danone use the joint venture mode instead of using other modes to enter China. First, Danone can benefit a lot from Wahaha’s knowledge of local Chinese market and conditions...
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...THE DANNON COMPANY: MARKETING AND CORPORATE SOCIAL RESPONSIBILITY (A) Question 1) Should Dannon proactively communicate its CSR activities to the public? Discuss pros and cons of your decision. Answer: Dannon should not communicate its CSR activities to the public. Dannon and Yoplait are the two leading company in US with Yoplait have 35.4% market share and Dannon is second with 28.9% market share. Dannon is not too far behind Yoplait and so they don’t need to do much to become the number 1 player in America. Also, the consumers can gather more knowledge about the CSR activities of Dannon through the Dannon cares section on the website and the 16- page Corporate Social Responsibility Overview. So, it is not that the consumers are fully unaware of the company’s CSR activities. The pros of not communicating the CSR activities are: * When they will spend their marketing budget on TV ads, in-store shopper marketing tactics, branded websites etc. people will become more aware about the high health benefit products that they provide and thus increase the consumption. * Communicating its CSR activities to the public will not be of much benefit because consumers are more concerned about how much satisfaction the product can provide and how it impacts their life. * As the consumption increases, the loyalty will increase and there will be long-term sales impact. * Sometimes the consumers...
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...Case Study: The Dannon Company OL 690: Responsible Corporate Leadership Southern New Hampshire University March 25th, 2015 Introduction Danone, the parent company and U.S. subsidiary of Dannon, was founded in Barcelona Spain in 1919 by Isaac Carasso (Marquis, Shah, Tolleson, & Thomason, 2011). Isaac had the goal of developing a yogurt for more than the purpose of taste, but with additional inherent health benefits (Marquis, et al., 2011). The health benefits were based on the use of pure lactic ferments, which were initially prescribed by physicians due to their proven ability to help treat intestinal disorders (Marquis, et al., 2011). It was because of Carasso that consumers could have the added benefit of treating their intestinal disorder while nourishing their bodies. Daniel Carasso, Isaac’s son, was brought into the business and ultimately became CEO in 1939 after Isaac’s death (Marquis, et al., 2011). Prior to his father’s death, Daniel was able to take Danone to another level in 1929 when he founded it in Paris (Marquis, et al., 2011). Due to the extensive amount of competition in the yogurt business, Daniel leveraged the focus on health to differentiate Danone from the competition (Marquis, et al., 2011). After his father’s death, Daniel merged with two notable organizations in 1967 and 1973, Gervais and Boussois-Souchon-Neuvesel (BSN) respectively (Marquis, et al., 2011). These mergers resulted in rapid expansion throughout Europe, a newly named conglomerate...
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...Professional report on negotiation between Danone and Wahaha (2007-2009) On the 30th of September 2009 an almost 12 year relationship between French multinational enterprise Danone and Chinese Wahaha group ended by Danone withdrawing from the IJV (International Joint Venture) for monetary settlement. This report analysis the negotiation journey of the dispute and tries to classify the different negotiation steps based on the challenges of negotiating business deals in China. As a tool IRENEs framework on “Who/ How/ What” is used. Based on the analysis of the negotiation and the review of the cultural differences between western oriented and Chinese businesses suggestions will be made what could have been done differently by Danone. Overview of the Situation between Danone and Wahaha early 2007 The multinational Danone Group SA based in Paris in France is one of the biggest players on the global dairy product and bottled water markets. They are active on all five continents and the net sales in 2007 was more than 12 billion €. The Hangzouh Wahaha Group Co., Ltd. is a company that has grown from a small business, selling drinks to school children to become one of the most important and largest Chinese bottled-water companies already in 2007. Although it is difficult to find detailed financial figures on Wahaha it can clearly be stated that in 2007 the Group was much smaller than Danone. At that time Wahaha contributed approximately 6% of Danone’s...
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...China By Shangguan Zhoudong (chinadaily.com.cn) 2007-06-15 Brief introduction Group Danone is one of the most famous food and beverage groups in the world with its headquarters in Paris and 90,000 staff members worldwide. Group Danone is a Global Fortune 500 company with a long history and large size. Danone develops its business across over 120 countries focusing on three core categories: fresh dairy products, biscuits (in which it ranks second worldwide) and beverages (in which it ranks first worldwide). Founded in 1966, Danone has followed an active expansion strategy throughout the world since the 1990s. In less than 40 years, Danone has become a giant of the food industry, owning many famous international brands such as Danone, LU, Evian, and more. Since the end of the 1980s, Danone began to develop the production and business in China extensively by investing in building factories. Now, the main business of Danone in China concerns yogurt, biscuits and beverages. Danone has 70 factories in China, including Danone Biscuits (in Shanghai, Suzhou and Jiangmen), Robust (in Guangzhou), Wahaha (in Hang Zhou), and Health (in Shenzhen). The products are not only sold in China, but also exported to different countries. Four brands under Danone Danone: the leading brand worldwide for fresh dairy products; Danone represents almost 20 percent of the international market. Danone is present in 40 countries worldwide. Evian: the best selling mineral water brand, with 1...
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...Paris Williams Danone Case What’s Danone? Groupe Danone is a public French multinational corporation. It is known for fresh dairy products, bottled water, and medical nutrition. Subsidiaries: Many of Danone’s subsidiaries are companies that manufacture specific products for specific markets. For example, The Dannon Company is a subsidiary of Groupe Danone operating in the United States primarily under the brand name Dannon. Affiliates: Multiple companies’ supply components go into the final goods sold under Danone Groupe brand names. These companies have a presence in the industry already, make packaging materials, and/or produce raw dairy products. In the case study, Danone formed an affiliation with Wahaha Group to get a better foothold in the expanding Chinese market. Cultural: In Spain and Italy Danone established relationships with local suppliers. In Eastern Europe Danone took over local suppliers to exploit growing demand for fresh dairy products. Fewer Chinese citizens have refrigerators to hold fresh dairy products. Administrative Danone rarely sends executives (or resources) to their joint ventures, but allows them to be autonomous. Danone and Wahaha (Chinese) joint venture Danone has been accused of trying to become a monopoly in the Chinese market. Human Resources The Danone Way Programme: Embodies Danone’s commitment to combining business success and attention to people and the community Human resource policies represent a dual commitment to success and social...
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...936 Groupe Danone - issues regarding its policies 1. Company’s background The company has its roots in Spain, where Danone was founded by Isaac Carasso in 1919. Having previously lived in the Balkans where yogurt was a dietary staple, Carasso decided to introduce this healthy product in Barcelona. He opened a small yogurt business named "Danone," meaning "Little Daniel" after his son. Carasso was aware of scientific advances that had been made with fermented milk by Elie Metchnikoff at the Pasteur Institute in Paris. He perfected the first industrial manufacturing process by combining the traditional method of making yogurt with the pure cultures that had been isolated in Paris. In 1923, the first Danone yogurts start to be sold in pharmacies as doctors recommend it for its therapeutic qualities. The younger Carasso, Daniel, learned the family business in Spain and decided to establish Danone in France in 1929. In 1949, the yogurt is almost a dairy product. The porcelain “envase” is substituted by the one made of glass. This innovation makes it easier to popularize the yogurt. In 1968, Danone starts its first TV campaign. In 1985, Danone creates its first “low fat yogurt” called “Danone Desnatado”. In 1992, Danone was the Official Sponsor of Barcelona's Olympic Games. “Danone Institute” is created in 1993. Its main objective is to research and develop healthier and better products for the company. 2. Mission, values and corporate philosophy Danone Group's mission...
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...beverage company Denon started its operation by making an agreement with Grameen group which is named as Grameen Danon. Grameen Danon launched in 2006 and they officially launched their 1st package of product named Shokti doi as the main concern of Shokti doi is to provide nutrition to the poor children of Bangladesh which can able to fulfill their nutritional requirements. As they started their business they have faced lots of obstacles such as the lack of proper distribution, non-standardized management along with localization problem. Also, the distribution through women raised the fact of cultural barriers. The unplanned product and overstated pricing strategy also become a fact of their market loss. Various key factors like Product, Price, Promotion, Proper segmentation and target market are also play a big role in terms of generation revenue for n organization. Based on our research objectives and other related subjects of the research, we developed few hypotheses for it, which we have tested by our primary and secondary data that we have collected by survey. The data we have collected can be divided into two categories are Primary Data and Secondary Data. Primary data refers to the data collected from the survey that we have conducted among the samples of the target consumers who are assumed as representatives of the target population. Secondary data refers to the data that we have collected from various articles, magazines and websites. Our research is a combination of...
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...General Mills, Inc Summary General Mills is an American company that specializes in the production, packaging and distribution of food products. The company has managed to acquire a significant share of the market through mergers and acquisition. Currently, the company controls about 31 percent of the market. The industry is characterized by a moderate to low level of competition. The main competitors include Groupe Danone, Kellogg, and Kraft. Each company is able to retain its customer base since consumers tend to consume foods they are used to and hence strong brand loyalty. The company’s competitive advantage lies on its broad range of products and high level of innovation. High level of innovation has enabled the company to meet the changing customers’ need effectively while minimizing the operational costs. By providing a wide range of products, General Mills has managed to minimize risks. General Mills basically targets three groups, which include; baby boomers, Hispanics and the Minneapolis population. General Mills, Inc General Mills, Inc is an American company that is headquartered in Minneapolis in Minnesota. The history of the four industry traces back to the 1850’s and General Mills was founded in 1928 by James Ford Bell, who facilitated a merger between several milling companies in the region. The company is principally involved with the production and distribution of consumer foods. The company provides a wide range of products including meals...
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...Study: The Dannon Company Student’s Name Institution Affiliation Case Study: The Cannon Company Introduction Dannon Company was among the US subsidiary of Danone, which was one of the largest health-focused companies in the whole world. Its global business centered on fresh dairy such as active yoghurt, medical nutrition, baby nutrition and the bottled water. In 2008, Dannon did manufactured and also marketed the fresh dairy products in US and they became number 2 player in domestic yoghurt market. Dannon’s marketing efforts did focused on the growing US yoghurt consumption and expanding the category, and this was while growing the brands. Dannon has been maintaining some strong commitment to CSR, which was integrated into the overall mission of the company. They have internalized its CSR commitments and programs (Marquis, Et al, 2010). Danone took some holistic approach to social responsibility and this was indicated by the mission statement. The social values were embedded deeply in the company’s culture and also the business. Antoine Roboud, who was the CEO, communicated the vision of Danone double commitment to the economic performance and social responsibility in 1972. According to the senior leadership, the social responsibility was the basis to the purpose of Danone as the economic performance. This was the double project and it stipulated some equal respect for the social influence and the financial results of the business decisions (Marquis...
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...Dannon Company is US subsidiary of the Danone Company that was founded in Spain by Isaac Carasso in 1919. Isaac Carasso created an innovative yogurt product using ingredients obtained from Paris, which were used to treat intestinal disorders. Isaac’s son, Daniel went on to found Danone in Paris and after Isaac’s death in 1939, he immigrated to the United States seeking a safe-haven after World War II (Marquis, 2010). In 1942, Carasso founded Dannon Milk Products, Inc., changing the name from Danone to Dannon in order to sound more “American”. During this time, the market for yogurt in the United States was almost non-existent. Carasso had two successful breakthroughs, first in 1947, introducing “fruit on the bottom” yogurt and in 1955 with low-fat yogurt, all appealing to health enthusiasts (Marquis, 2010). Over the next several decades, structural and product changes took Dannon is several different directions. In the 1980’s Dannon had 17 different product lines and had received FDA approval for a new sugar free sweetener which allowed for the most successful product launch to date, “Dannon Light”. In 1994, the company focused on rebranding their products, focusing on the overall health benefits of everything they produced (Marquis, 2010). Although the United States had had yogurt products available for over 60 years, research concluded that yogurt was not a core component to the American diet and the biggest potential for growth for Danone, rested within the United States. In...
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...beverage company Denon started its operation by making an agreement with Grameen group which is named as Grameen Danon. Grameen Danon launched in 2006 and they officially launched their 1st package of product named Shokti doi as the main concern of Shokti doi is to provide nutrition to the poor children of Bangladesh which can able to fulfill their nutritional requirements. As they started their business they have faced lots of obstacles such as the lack of proper distribution, non-standardized management along with localization problem. Also, the distribution through women raised the fact of cultural barriers. The unplanned product and overstated pricing strategy also become a fact of their market loss. Various key factors like Product, Price, Promotion, Proper segmentation and target market are also play a big role in terms of generation revenue for n organization. Based on our research objectives and other related subjects of the research, we developed few hypotheses for it, which we have tested by our primary and secondary data that we have collected by survey. The data we have collected can be divided into two categories are Primary Data and Secondary Data. Primary data refers to the data collected from the survey that we have conducted among the samples of the target consumers who are assumed as representatives of the target population. Secondary data refers to the data that we have collected from various articles, magazines and websites. Our research is a combination of...
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...Nature People, E RmAnC fo GRI pERoRS T IndICA SUSTAINABILITY REPORT 2012 STRATEgY 4 EDITORIAL FRANCK RIBOUD 6 KEY SOCIAL TOPICS NUTRITION AND HEALTH ISSUES SOCIAL ISSUES ENVIRONMENTAL ISSUES 7 10 12 14 STRATEgY 2012 HIgHLIgHTS HEALTH FOR ALL PEOPLE NATURE 15 22 28 34 40 MEASURINg PROgRESS AND PERFORMANCE THROUgHOUT THE VALUE CHAIN DANONE WAY RESPECT DANONE’S EVALUATION BY NON-FINANCIAL RATING AGENCIES 41 46 56 HISTORICAL APPROACH AND HIgHLIgHTS REFERENCE DOCUMENTS HIGHLIGHTS AND KEY DATES 1972-2012 57 58 50 2 Danone Sustainability Report 2012 PERFORMANCE 62 gRI INDEx Self-evaluation of the application of GRI according to version 3.0 guidelines for the GRI with approval by KPMG Audit. 72 IMPACTS AND RESPONSIBILITIES IN BUSINESS, FROM END TO END 74 COMPANY PROFILE AND REPORT PARAMETERS COMPANY PROFILE REPORT PARAMETERS VALIDATION OF THE REPORT BY AN EXTERNAL THIRD PARTY 75 76 83 86 PERFORMANCE INDICATORS GOVERNANCE, COMMITMENTS AND DIALOGUE ECONOMIC ENVIRONMENTAL SOCIAL HUMAN RIGHTS SOCIETY PRODUCT RESPONSIBILITY 86 94 102 134 152 158 166 176 CONTACTS Danone Sustainability Report 2012 3 SUSTAINABILITY REPORT 2012 EDITORIAL FRANCK RIBOUD he year 2012 confirmed in spectacular manner the profound shift in the global economy that is gathering pace. On the one hand, new economic powers such as China, India and Brazil are growing as other economies such as Indonesia and Nigeria are emerging as future powers...
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...Features• 2) Drivers of change• 3) 5 porters analysis• 4) Key success factors• 5) Strategic group map• 6) Recommendations 3. 1)Dominant economic features1) Market Size and 2) Scope of compétitive Growth Rate: rivalry : 4. 3) Number of rivals : 5) Distribution channels :• Nestlè • wholesale clubs• Coca-Cola • supermarkets• Pepsi • discount stores• Groupe Danone • food store• Suntory Water Groups • supercenters 6) Pace of technological4) Number of buyers change. No one buyer accounts for a significant fraction of 7) Degree of product overall market demand. différentiation 8) Vertical integration 5. 2) Drivers of change:• Increase in environmental concerns• Convenience and portability• The profit margins in the industry are very lucrative• To facilitate entry into carious parts of the globe many companies enter into strategic alliances 6. 3) 5 porters analysis 7. The threat of substitute product• Other type of drinks : Soft drink, milk, Tea, Soda• Innovative products like vitamin water and flavored water.Those products are more and more popular andthat’s why they can be considerate as a real threat. HARD! 8. The threat of the new entrant• Biggest competitors have the majority of the global market.• Only competitors that are able to provide important quantities of bottles water with a cheap price will be able to enter this market. DIFFICULT! 9. The bargaining power of suppliers• Due to a large number of existing suppliers : about 50 different companies in the USA. LOW! 10. The...
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...competitive intensity which portrays an image of the overall attractiveness and profitability of a market. To aid in our evaluation of Nestle and its status in the industry, we will apply Porter’s Five Forces Model to the company. Threat of New Entrants The food processing industry is very large and competitive; it is not uncommon for firms within the industry to do quite well. As a result, many companies enter into the market every year in an attempt to gain a portion of the profitable market. Luckily for Nestle, the company has been around for over a century and boasts a long history of quality products and consumer satisfaction which has allowed the company to obtain a considerable share of the market. As a result, new entrants into the industry must attempt to seize a portion of Nestlé’s market share in order to survive. Essentially, Nestle is constantly a target and so the threat of new entrants is moderate. Threat of Substitute Goods Due to the nature of the industry, Nestle is beset with the threat of substitute goods. From bottled water to lean pockets, there are arrays of similar products that compete directly with Nestle. It is vital for Nestle to continuously find new ways to improve its products as the competition is so fierce. In recent years, Nestle has focused on the health and wellness aspects of its products to maintain its competitive edge in the market. Bargaining Power of Suppliers Nestle prides itself on creating and maintaining positive relationships...
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